Daily Currency Update

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Moderna vaccine rolled out in UK

GBP - British Pound

Today the UK will begin the use of the Moderna Inc. vaccine for the first time. This is the third vaccine now being used in the UK, alongside AstraZeneca and Pfizer’s. The main reason for the use of Moderna’s shot is because of concerns over AstraZeneca’s shortfall in supply over coming months.

The UK has ordered 17 million doses of this vaccine and it will initially be used in Wales. This is positive for Sterling as it means the vaccine rollout will continue at its current pace without any delays. The UK focused FTSE 250 pushed up above pre-pandemic levels yesterday as UK equities were buoyed.

GBPEUR had its worst day of the year yesterday and its carried on. The move we’re seeing from the euro, dragging GBPEUR down from 1.18 is weighing on a number of GBP crosses. There’s a suggestion that this move could be partially led by the news that the EU will have enough supplies to vaccinate 57% of adults in Germany, Italy, France, and Spain by the end of June, almost two months earlier than expected.

Key Movers

In the US we have seen the dollar rebound from a poor Monday and bank holiday. We know GBPUSD has sold off, but it managed to also claw back some ground against the Canadian dollar. EURUSD though has continued to pick up and despite COVID-19 difficulties in Europe, its now around the mid 1.18s.

It could be that the dollar story has been overbought and the momentum has run its course, the dollar Index could have hit a ceiling at 93.50. There is Federal Reserve minutes released tonight and a couple of Fed speakers so perhaps that will give some clarity and direction to the dollar.

Expected Ranges

GBP/USD: 1.3740 - 1.3850 ▼

GBP/EUR: 1.1590 - 1.1675 ▼

GBP/AUD: 1.8005 - 1.8130 ▼

EUR/USD: 1.1820 - 1.1925 ▲